A board is a key function of corporate governance that is to ensure that a company is legal and operates in the best interest of shareholders and other stakeholders. This is why the board operate independently of management, and focus on issues of importance instead of the day-to-day business.
The board is responsible for the management of risk and the strategy and operation of a business, as well as other decisions that are made by it. It also selects and oversees the performance of the CEO, as well as the succession planning process for the CEO and also establishes the company’s mission and culture.
It also promotes shareholder interest, ensures that financial information is correctly reported, and makes sure that investors are provided with all the information that could impact their holdings. It also takes steps to safeguard the integrity of a business and stop fraud and frauds. It should encourage directors to be informed on a regular basis, especially about emerging technologies, important issues such as environmental, social, and governance (ESG) or global issues that affect the way businesses are run.
A well-formed structure of the committee, with an executive secretary and chair is crucial to efficient governance. It’s important to create an environment of open communications and collaboration between all members of the committee. The committee secretary will help to set the agenda, and keep minutes of meetings and distribute them to all members of the committee.
A committee should be able to trust its advisors‘ advice, reports, and opinions. It is essential for the committee to understand who these advisers are and to evaluate their qualifications.
data management: key to M&A success
